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Blue Label Telecoms (JSE:BLU) Degree of Operating Leverage : -0.48 (As of Nov. 2024)


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What is Blue Label Telecoms Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Blue Label Telecoms's Degree of Operating Leverage for the quarter that ended in Nov. 2024 was -0.48. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Blue Label Telecoms's Degree of Operating Leverage or its related term are showing as below:

JSE:BLU's Degree of Operating Leverage is ranked better than
68.31% of 366 companies
in the Telecommunication Services industry
Industry Median: 1.44 vs JSE:BLU: -0.48

Blue Label Telecoms Degree of Operating Leverage Historical Data

The historical data trend for Blue Label Telecoms's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Blue Label Telecoms Degree of Operating Leverage Chart

Blue Label Telecoms Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.68 -6.50 -5.68 -4.48 -2.98

Blue Label Telecoms Semi-Annual Data
May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -31.29 -4.48 -7.79 -2.98 -0.48

Competitive Comparison of Blue Label Telecoms's Degree of Operating Leverage

For the Telecom Services subindustry, Blue Label Telecoms's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Blue Label Telecoms's Degree of Operating Leverage Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Blue Label Telecoms's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Blue Label Telecoms's Degree of Operating Leverage falls into.


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Blue Label Telecoms Degree of Operating Leverage Calculation

Blue Label Telecoms's Degree of Operating Leverage for the quarter that ended in Nov. 2024 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 1975.151 (Nov. 2024) / 1847.945 (Nov. 2023) - 1 )/( 14262.18 (Nov. 2024) / 16676.476 (Nov. 2023) - 1 )
=0.0688/-0.1448
=-0.48***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Blue Label Telecoms  (JSE:BLU) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Blue Label Telecoms Degree of Operating Leverage Related Terms

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Blue Label Telecoms Business Description

Traded in Other Exchanges
N/A
Address
75 Grayston Drive, Corner Benmore Road, Morningside Extension 5, Sandton, Johannesburg, GT, ZAF, 2196
Blue Label Telecoms Ltd is a technology company. It derives revenue from the distribution of airtime and mobile transaction services. It operates through four segments: African Distribution, International, Solutions and Corporate. African distribution includes the distribution of physical and virtual prepaid airtime and electricity of the South African telecommunication and utilities companies. International includes the distribution of physical and virtual prepaid airtime in India and Mexico and payment solutions in India. Solutions include the provision of a mobile transactional platform and the marketing of mobile and financial products. The company generates the vast majority of its revenue in South Africa.